A partnership exists when two or more people operate a business as co-owners, and share the income. The partners each act on behalf of each other.
There are a number of advantages of partnerships.
They can be easier and less expensive than companies to establish. The partners may carry on business under a trading (also known as a ‘business’ name). The skills, expertise and resources of a number of people can be utilised for the greater economic benefit of the partners. The administration of a partnership can be very simple, and as set out in the ‘partnership agreement’ between the partners. It can be easy to change from a partnership to a company structure.
There can also be a number of disadvantages of partnerships.
All partners are personally responsible for the business debts of the partnership. This means that each partner is individually liable for debts incurred by the other partners in the partnership. This is referred to as being ‘jointly and severally’ liable. Partnerships can have a different tax rate from companies. Other partners must agree to a partner transferring his or her partnership to another person. With partnerships, personal differences can interfere with the ongoing business of the partnership.
There are a number of other structures that may be preferable to a partnership structure (such as an incorporated company, or sole trader, or a trust arrangement), but each set of circumstances would need to be assessed on its merit.
Where a partnership structure is chosen, a well-written partnership agreement should be put in place, outlining every partner’s rights and obligations, and proper dispute resolution procedures.
We can help you with your partnership arrangements, whether it is putting in place a partnership agreement, or assisting you through a dispute over an existing partnership, including mediation, arbitration and court proceedings.
As an adjunct to these commercial services we also provides assistance with wills, estate planning and probate. You would be surprised how intertwined all of these areas are.
Fees and Charges
We understand that for many of our smaller clients cost certainty is essential. To meet that need, we’re happy to offer many of our common legal documents at a fixed price.
For complex advice and strategic transactions, we offer a range of value-based pricing models, including:
- Hourly rates
- Capped fees
- Fixed prices
- Staged costing